Glossary, ownership

Condominium juristic person in Thai property

นิติบุคคลอาคารชุด

The condominium juristic person is the legal entity, created when a condominium is registered, that manages the building's common property for all unit owners. It collects fees, enforces the by-laws and is run by a manager under an elected committee.

Every unit owner is a co-owner of the common property and votes at general meetings in proportion to their ownership ratio. Under the Condominium Act the juristic person must hold an annual general meeting within 120 days of its financial year end, where the accounts are presented and the committee of three to nine members is elected.

A buyer meets the juristic person twice in a purchase. It issues the letter confirming the building's foreign ownership ratio, and the certificate that no common expenses are owed on the unit. The land office will not register a transfer without that debt-free certificate.

Its records also show how well a building is run. Before buying a resale unit, ask for the latest audited accounts, the sinking fund balance, the level of arrears among owners, recent meeting minutes and the by-laws, including the rules on pets, renovations and short lets. A building with thin reserves and high arrears is likely to face a special levy. See title deeds and due diligence and the condominium foreign quota.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to condominium juristic person

Common-area fee (CAM fee): The common-area fee, or CAM fee, is the recurring charge each condominium owner pays towards running the building: staff, security, lifts, pool, insurance and cleaning. It is set in baht per square metre of unit area per month and is often billed a year in advance.
Sinking fund: A sinking fund is the reserve a condominium's juristic person holds for major repairs and capital works, such as repainting the building or replacing lifts. Each buyer pays into it once, at first transfer from the developer, at a set rate per square metre.
Condominium Act: The Condominium Act B.E. 2522 (1979) is the statute governing how condominiums in Thailand are registered, owned and managed. Sections 19 and 19 bis set out which foreigners may own units and cap foreign ownership at 49% of a building's unit floor area.
Foreign quota: The foreign quota is the share of a condominium that foreigners may own freehold: no more than 49% of the total floor area of all units in the building, under section 19 bis of the Condominium Act.